Market in Minutes: 

UK Residential Development Land

UK Residential Development Land
UK Residential Development Land

10 February 2016, by Lucy Greenwood

Urban land values have risen but the market remains largely stable

■ Urban development land prices continued to increase faster than greenfield land values. In the last three months of 2015, urban development land values grew by 1.5% while greenfield values rose by 0.7% delivering annual growth of 7.1% and 2.0% respectively.

■ Growth in urban development land values was supported by strong demand for homes in urban and well-connected locations near transport hubs, particularly around Birmingham and Coventry.

 

■ However, uncertainty surrounding recent policy announcements affecting affordable housing provision and the land value implications of the requirement for Starter Homes continues to subdue the market overall.

■ Moreover, appetite for new land acquisitions from major housebuilders has not matched their increase in output or their higher profit margins. Rather than acquiring significant volumes of new land, some of the biggest players have been able to rely on converting their existing strategic land sites into permissioned plots.

■ Public land disposal will increase the supply of development land, but the rate at which this land is absorbed into the market will depend on the location, timing and type of land disposal.

Articles from Market in Minutes: UK Residential Development Land – February 2016

The markets remain stable as a result of uncertainty over policy and ample land supply relative to builder appetite

 
 

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Jim Ward

Jim Ward

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Residential Research

Savills Margaret Street

+44 (0) 20 7409 8841

 

Susan Emmett

Susan Emmett

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Residential Research

Savills Margaret Street

+44 (0) 203 107 5460

 

Lucy Greenwood

Lucy Greenwood

Associate
Residential Research and Consultancy

Savills Margaret Street

+44 (0) 20 7016 3882

 

Emily Williams

Emily Williams

Associate
Residential Research

Savills Margaret Street

+44 (0) 20 7016 3896